Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)

1. deduction from the balance per company's records
2. addition to the balance per bank statement
3. deduction from the balance per bank statement
4. addition to the balance per company's records

 

Answer:

A .

Step-by-Step explanation

Based on the document attached, a debit memo for an NSF check obtained from a client followed the bank statement. This item will be used as a deduction from the balance per company reports on the bank reconciliation so with that the answer would be letter A which is the deduction from the balance per company's records. When performing a bank reconciliation, the things that are applied to the balance per bank include: transit transactions that include the money and checks that were issued by a corporation as of the date of the bank statement, but were not deposited in time for them to appear on the bank statement.